Netflix gets $100 million revolving facility led by Wells Fargo

By Sara Rosenberg

New York, Sept. 21 - Netflix Inc. closed on a new $100 million three-year revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Wells Fargo Bank acted as the lead arranger, bookrunner and administrative agent on the deal that was completed on Sept. 16.

Pricing on the revolver can range from Libor plus 275 basis points to 325 bps based on the ratio of total debt to EBITDA.

There is a $50 million accordion feature.

Covenants include a consolidated leverage ratio that can't exceed 2.25 to 1.00 and EBITDA for the four-quarter period ending as of the last day of any fiscal quarter can't fall below an applicable threshold that ranges between $125 million and $200 million.

Proceeds may be used for working capital, general corporate purposes and the purchase by the company of its stock.

Netflix is a Los Gatos, Calif.-based provider of online movie rental subscription services.

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